Quantcast

How airlines decide their fleet mixes: Key considerations

LA Considers $25 And $30 Minimum Wages For Hotel And Airport Workers
Airlines are on the hook for more than you think if something goes wrong with your trip
WA Labor & Industries plans to create new airline worker protections
Airlines must now give automatic refunds for significant delays. Here's what to know.
Spirit Airlines Pursues Bankruptcy as a Path to Tie-Up With Frontier
American Airlines fined $50M for violating disability laws
Canada's flight attendant union applauds NDP bill to end unpaid work in the airline sector
American Airlines testing new technology that would crack down on boarding
Exciting New Airline Routes Coming to North
Another city ignores airport commission's advice, zones for housing near JWA
United shares hit pre-pandemic high after airline forecasts strong finish to 2024, plans buyback
Alaska Airlines Just Made Its Loyalty Program Even More Lucrative With New Rewards, Better Upgrades, and More
Food safety problem closes Detroit airline kitchen leaving 200 flights without meals
5 Reasons Why Kazakhstan's Air Astana Is Establishing Itself As A Key Player In Asian Aviation
JetBlue is no longer serving hot food in economy class on transatlantic flights
Video shows traveler hurl computer monitor at Frontier employees in Chicago
White House 'in touch' with airlines as hurricanes Helene, Milton spark price-gouging fears
Airline bans two items from luggage amid conflict in the Middle East
Turkish Airlines pilot dies midflight, leading to emergency landing in New York
Spirit Airlines Explores Bankruptcy Filing
Airlines turn to AI to allocate gates and cut waiting times
American Airlines Passengers Save Woman from Alleged Violent Male Companion on Flight
Garuda Indonesia and Japan Airlines (JAL) Form Joint Business Agreement — What To Know
Here's how Southwest Airlines' new seating and boarding process will work
Delta Adds New Route to Asia
Southwest Airlines will begin selling assigned seats in 2025
United Airlines Pilot Buys Passengers Pizza In Albuquerque After Flight Was Delayed 7 Hours
Czech Airlines to Cease Operations, Ending 23-Year SkyTeam Partnership
An Asian airline hopes launching one of the world's longest narrowbody routes will actually be a comfort upgrade for passengers
Airlines begin canceling flights, offering rebooking ahead of Hurricane Helene
How airlines decide their fleet mixes: Key considerations
Policy
Webp messenger creation 52a65b58 5627 4954 899a aad9b5da118d
Airbus A330neo | Wikipedia

Of all the decisions an airline has to make, determining its fleet mix is crucial. The choice of aircraft impacts various operational aspects such as route networks, flight frequencies, cabin classes, and fare prices. This decision-making process involves extensive analysis and risk assessment as airlines weigh the advantages and disadvantages of different aircraft models.

The process of selecting aircraft for a fleet is complex and interconnected with other strategic business decisions like route choices and fare structures. Fleet commonality plays a significant role by allowing airlines to benefit from economies of scale in maintenance and pilot training.

Aircraft manufacturers design their planes with market needs in mind, often consulting directly with airlines during development. Aircraft are generally categorized into narrowbody for short to medium-haul flights and widebody for longer routes. However, there are many variables within these categories. For instance, Airbus's A330neo typically seats fewer than 290 passengers with a range of 6,550 NM (12,130 km), while the A350-900 accommodates around 325 passengers with a maximum range of 8,100 NM (15,000 km).

Get the Newsletter
Sign-up to receive weekly round up of news from Sky Industry News
By submitting, you agree to our Privacy Policy and Terms of Service. By providing your phone number you are opting in and consenting to receive recurring SMS/MMS messages, including automated texts, to that number from our short code. Msg & data rates may apply. Reply HELP for help, STOP to end. SMS opt-in will not be sold, rented, or shared.

When acquiring new aircraft, airlines face delays due to production backlogs. A study in the Journal of Air Transport Management highlights that "the fleet planning process is very complex for an airline," requiring consideration of factors like demand, economics, commonality, performance, finance options, type preferences on routes, and market conditions.

Route network compatibility is another critical factor. Airlines analyze their current or future network plans to determine suitable aircraft types. Long-haul carriers prefer long-range planes while low-cost carriers might opt for single-aisle jets suitable for multiple daily turnarounds.

Each aircraft model has unique technical attributes such as fuel efficiency, passenger capacity, range capabilities, maintenance costs, reliability factors, and fleet commonality which can influence decision-making. These factors help calculate key profitability metrics like Cost Per Available Seat Mile (CASM).

Return on Invested Capital (ROIC) is essential when purchasing new aircraft as it measures the returns generated versus costs incurred over an asset's service life. Colin Dobson from TransParagon Global explains that assessing commercial viability involves considering lifecycle costs including maintenance solutions and crewing arrangements.

Airlines have several financing options: outright purchase; leasing; or sale-and-leaseback agreements where upfront acquisition costs are transferred to third parties before leasing back assets at higher yearly overheads due to fees involved.

Political influences may also affect decisions—certain regions expect local manufacturers' preference while Western carriers face similar pressures favoring domestic brands like Boeing or Airbus depending on geographic location.

Long-term relationships between airlines and manufacturers often result in more favorable deals due to established partnerships over time.

Organizations Included in this History
More News

The Lockheed Martin F-22 Raptor, known as the world's first fifth-generation fighter jet, has never been sold to other countries.

Jul 15, 2025

The F-15 Eagle, a fighter jet in service for nearly 50 years, remains a significant asset to the United States and several allied nations.

Jul 15, 2025

Which country operates the most superior reconnaissance aircraft in the world?

Jul 15, 2025

A United States senator has raised concerns about the proposed partnership between United Airlines and JetBlue, known as "Blue Sky."

Jul 15, 2025

The McDonnell Douglas F-4 Phantom II, an iconic military aircraft, remains operational in limited numbers despite being over 60 years old.

Jul 15, 2025

Boeing's Dreamlifter aircraft has been making regular flights to Taranto-Grottaglie Airport in southern Italy, sparking curiosity among aviation enthusiasts and industry analysts.

Jul 15, 2025